EGDD Eastern Goldfields Inc (PK)

Eastern Goldfields, Inc. ("EGI") (OTCBB: EGDD) is pleased to announce the payment of all amounts due Investec under the bridging facility (term loan) obtained from Investec on May 27, 2008. The amount paid included repayment of 80,000,000 (Rand) in principal, 12,225,335 (Rand) in interest, and 43,950 (Rand) in other charges. This term loan was scheduled to mature on May 29, 2009. In receiving the payment, Investec released its security interest in all of the Company's assets.

"This repayment confirms our ongoing efforts to maintain liquidity and enhances our ability and financial flexibility to move forward with our business plan. This repayment was made possible through additional funding from a major investor and this further supports our achievements to date," said Michael McChesney, EGI's CEO and President.

About EGI: EGI is a growing company engaged in the mining, exploration and acquisition of gold properties in some of Southern Africa's most prospective regions. The company holds mineral rights over 41,200 acres (16,673 ha), currently has estimated mineral resources in excess of 4.4 million ounces and mineral reserves of 545,000 oz.

This press release contains 'forward-looking statements.' These are statements concerning plans, objectives, goals, strategies, expectations, estimates, intentions, projections, developments, future events, or performance, underlying (expressed or implied) assumptions and other statements that are other than historical facts. In some cases forward-looking statements can be identified by the use of forward-looking words such as 'believes,' 'expects,' 'may,' 'will,' 'should,' or 'anticipates,' or the negative of these words or other variations of these words or comparable words, or by discussions of plans or strategy that involve risks and uncertainties. No assurances can be given that such predictions and the estimates regarding mineral reserves, success of mining plans, or other projections will prove correct or that the anticipated future results will be achieved. Actual events or results may differ materially either because one or more predictions prove to be erroneous or as a result of other risks facing the company. Forward-looking statements should be read in light of the cautionary statements and risks that include, but are not limited to, the risks associated with a small company, the intense competition the company faces from others, and technological changes. Any one or more of these or other risks could cause actual results to differ materially from the future results indicated, expressed, or implied in such forward-looking statements. We undertake no obligation to update or revise any forward-looking statement to reflect events, circumstances, or new information after the date of this press release or to reflect the occurrence of unanticipated or other subsequent events.

Contact: William M. Aul 619-497-2555